This quiz works best with JavaScript enabled. Home > Monetary > Policy > Monetary Policy – Quiz 13 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Monetary Policy Quiz 13 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the required action of BSP to slow down inflation? A) Inflation Policy. B) Interest Rate Policy. C) Expansionary Policy. D) Contractionary Monetary Policy. Show Answer Correct Answer: D) Contractionary Monetary Policy. 2. The dual mandate of the Federal Reserve includes A) Price stability and economic growth. B) Price stability and economic freedom. C) Price stability and economic equity. D) Price stability and economic efficiency. Show Answer Correct Answer: A) Price stability and economic growth. 3. What is the annual percentage change in consumer price index? A) Inflation. B) Inflation Percentage. C) Inflation Rate. D) Rate. Show Answer Correct Answer: C) Inflation Rate. 4. If V and T are constant, then a contracted stock of money (M) must lead to ..... A) The same proportionate fall in price (P). B) A smaller proportionate change in price (P). C) The the same proportionate change in price (P). D) The same proportionate increase in price (P). Show Answer Correct Answer: A) The same proportionate fall in price (P). 5. Which is the difficulty in controlling money supply A) Both 1 and 2. B) The effects of interest rates. C) Neither 1 nor 2. D) Problems with monetary base control. Show Answer Correct Answer: A) Both 1 and 2. 6. The official interest rate has an effect on A) Expectations. B) Money market interest rates. C) Neither 1 nor 2. D) None of above. Show Answer Correct Answer: A) Expectations. 7. What is NOT a characteristic of currency? A) Durability. B) Portability. C) Uniformity. D) Unlimited supply. Show Answer Correct Answer: D) Unlimited supply. 8. Which of the following is NOT one of the three goals of Monetary Policy? A) Moderate long term interest rates. B) Cut taxes. C) Maximize employment. D) Stabilize prices. Show Answer Correct Answer: B) Cut taxes. 9. The Federal Reserve act was signed in A) 1865. B) 1913. C) 1917. D) 1930. Show Answer Correct Answer: B) 1913. 10. A Contractionary Monetary Policy is often called a: A) Tight Money Policy. B) Cheap. C) Frugal. D) Ugh. Show Answer Correct Answer: A) Tight Money Policy. 11. Who is in charge of Monetary Policy A) The Government. B) The Bank of England. C) The International Monetary Fund. D) The Department of the Treasury. Show Answer Correct Answer: B) The Bank of England. 12. What is an example of Commodity money? A) Currency. B) Diamonds. C) Coins. D) None of above. Show Answer Correct Answer: B) Diamonds. 13. The Basil accord in effect ensures the BofE makes banks hold a given level of deposits A) True. B) False. C) True but this contradicts the previous question. D) None of above. Show Answer Correct Answer: A) True. 14. A long-term goal of the Fed is ..... inflation A) High. B) No. C) Low. D) None of above. Show Answer Correct Answer: C) Low. 15. What makes Fiat money have value? A) Gold. B) Silver. C) Faith. D) None of above. Show Answer Correct Answer: C) Faith. 16. In the market for reserves, when the federal funds rate is above the interest rate paid on excess reserves, the demand curve for reserves is A) Vertical. B) Horizontal. C) Positively sloped. D) Negatively sloped. Show Answer Correct Answer: D) Negatively sloped. 17. Of the categories of federal spending listed below, which is the largest? A) Defense spending. B) Social security. C) Interest on the national debt. D) Foreign aid. Show Answer Correct Answer: B) Social security. 18. By driving interest rates up, high levels of government borrowing may crowd private borrowers out of the lending market A) Crowding out effect. B) Monetarism. C) Stagflation. D) Inflation. Show Answer Correct Answer: A) Crowding out effect. 19. Monetary policy in the Us is the responsibility of which institution A) US treasury. B) Federal Reserve. C) Internal Revenue Service. D) Office of budget management. Show Answer Correct Answer: B) Federal Reserve. 20. What characteristics of money is being met, when the FED raises/ lowers the money supply? A) Limited supply. B) Acceptability. C) Durability. D) Uniformity. Show Answer Correct Answer: A) Limited supply. ← PreviousNext →Related QuizzesMonetary QuizzesMonetary Policy Quiz 1Monetary Policy Quiz 2Monetary Policy Quiz 3Monetary Policy Quiz 4Monetary Policy Quiz 5Monetary Policy Quiz 6Monetary Policy Quiz 7Monetary Policy Quiz 8Monetary Policy Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books